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CentrePath's Fate May Be Sealed

CentrePath, a provider of storage networking services, has been acquired by the company now headed by Tom Hudson, former CEO of CNT (now McData). And the move could separate CentrePath forever from the storage world. (See Capital Buys CentrePath.)

CentrePath, a company that morphed from its beginnings as GiantLoop, has been a services integrator, designing and helping set up storage and optical networks for data replication. It claimed 150 customers early in 2006, including the Bank of New York, Children's Hospital of Philadelphia, the City of Boston, the City of Chicago, Comcast, Merrill Lynch, Turner Broadcasting, and Wal-Mart. Bookings were said to be up 75 percent to $14 million in 2005.

CentrePath did not have its own facilities, but resold broadband network services from carriers like AT&T, adding its own configuration and branding. It marketed a management system called Magellan along with its services, which provided the basis for an event correlation and monitoring service that CentrePath claimed rivaled EMC Smarts. Magellan supposedly could tell network operators exactly when and where a SAN was failing more quickly than an SRM system could.

Magellan was said to factor in helping CentrePath get its latest funding, an infusion of $10 million in April 2006, which brought the company's total to $19 million. (See Another Round for CentrePath.)

But in late November, CentrePath was sold to Capital Growth Systems Inc. (OTCBB: CGSY) for about $6.75 million. And CentrePath's Magellan may be sold or incorporated into another product within the next 90 days, a CGSY spokesman says.

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